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Online since 1999
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Dollars plentiful, banks slash lending rates





Banks in Vietnam cut their dollar lending rates on the interbank market in the past week due to a growing surplus after firms switched to borrowing in Vietnamese dong under a government stimulus package, bankers said.

The State Bank of Vietnam said on Monday banks cut their dollar lending rates for nearly all terms in the week ending August 27. Rates on 12-month loans dropped to 1.7 percent from 2.8 percent the previous week.

Many companies that needed dollars earlier this year have switched to borrowing in dong because of a government rate subsidy package, leaving banks with a surplus of the foreign currency, the official Securities Investment newspaper said.

It said central bank measures to limit the use of the dollar in domestic markets had also helped reduce demand.

On August 20 the central bank and the Industry and Trade Ministry agreed to tighten control over foreign exchange as dollar rates rose on the unofficial market and the country's exports were forecast to fall 6.4 percent this year to US$58.6 billion.

On the unofficial market, the dollar rose to 18,390/18,430 dong on Monday from 18,370/18,390 last Friday.

Commercial banks lent businesses about VND398 trillion ($22.3 billion), equivalent to 81 percent of the government’s loan-subsidy program, as of August 27, according to a statement on the government’s website.

Last week the value of subsidized loans rose 0.43 percent from a week before, accelerating from 0.25 percent the previous week, central bank data shows.

Governor Giau told a seminar last week the central bank would maintain its looser monetary stance, with the annual credit growth target lifted to 30 percent from the 25-27 percent set earlier by the government.

Money supply would be targeted to expand 30 percent in 2009, accelerating from 20 percent growth last year, Giau said in a statement seen on Monday.

“Inflation is on a rising trend in the last months of the year due to the impact of the easier fiscal and monetary policy,” he said, forecasting inflation this year at 6 percent to 8 percent. Consumer prices surged 22.9 percent in 2008.

The central bank said state-run banks raised their dong deposit rates slightly, offering to pay 8.2-8.4 percent on six-month deposits against 8.0-8.4 percent a week ago, but that was below the 8.5-8.9 percent offered by partly private banks.

Last week bankers said commercial banks extended their campaign to raise dong funds by increasing interest rates and in one case offering gold prizes.

Source: Thanh Nien, Reuters

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PetroVietnam Finance lends Vinacafe Buon Ma Thuot $42.2 million





PetroVietnam Finance Co., a unit of Vietnam Oil & Gas Group, will lend coffee company Vinacafe Buon Ma Thuot Co. up to VND750 billion (US$42.2 million) to fund development of a plantation.

Vinacafe would use the money to buy urea and other products from PetroVietnam Fertilizer & Chemical Joint-Stock Co., the country’s biggest-fertilizer producer, the lender said in an e-mailed statement Friday.

“We offer Vinacafe an interest rate of 6 percent for this one-year loan as it is part of the government loan subsidy program,” PetroVietnam CEO Tong Quoc Truong said in a phone interview. “This is a very good rate compared with the lowest rate of 10 percent we have offered to others.”

Vietnamese lenders gave VND255 trillion ($14.3 billion) in loans to businesses between February 1 and April 23, after the government started a subsidy program to bolster the slowing economy.

Source: Bloomberg

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Question marks over healthcare park developer



Dubious: a model of the high-tech healthcare park
A businessman turned monk with several other hats is suspected to be the promoter of a project touted as a multimillion-dollar healthcare park in Ho Chi Minh City.

The Hai Thuong Healthcare Park is mired in controversy after it held a groundbreaking ceremony last Saturday, without getting a license.

In one of several inconsistencies surrounding the healthcare park, the groundbreaking ceremony was held in Binh Chanh District and not at the purported project site, District 2.

The invitation to the ceremony mentioned representatives from several international organizations and Vietnamese government agencies would attend, but a local newspaper reported it could spot just one official from the HCMC health department.

Many monks attended the groundbreaking ceremony, media photos have shown.

This has prompted suspicions that the project developer is Nguyen Thieu Van, who is also a monk known as Thich Minh Tam.

Nguyen Thieu Van, aka Thich Minh Tam

Thanh Nien has since spoken to several people who had been approached by Van to participate in the venture.

They said Van returned to Vietnam from abroad several times in 2004 and 2005 to participate in charity activities.

Van, who claims to hold two doctorate degrees in law and economics from Australia and the US respectively, tried to convince many people to get involved in developing the Hai Thuong healthcare park, promising many international organizations would be very willing to sponsor the project.

Among other things, he also told people he had worked for the United Nations, many international institutions including the World Bank, and was formerly the managing director of DBM Global, a major international financial group.

Van also said he was a member of the Australian Bar Association.

But lawyer Trinh Vinh Phuc of the HCMC Bar Association said Tam had been dismissed from the Australian Bar Association. Tam said he had verified the information through the Internet and other sources.

Phuc said that like many other people, he had also joined the project with Van but quit after discovering many dubious circumstances surrounding the identity of Van and the feasibility of the project.

Speaking with Thanh Nien Friday, Monk Thich Thien Tanh, an official of the HCMC Buddhists Association said so far his agency had not heard anything about the project.

He urged agencies concerned to investigate who were behind the project.

“We would not brook anyone or any organization who misuses Buddhism in pursuit of personal gains or for other purposes,” he said.

The organizing committee of Saturday’s groundbreaking ceremony for the Hai Thuong international high-tech healthcare park had presented it as an 18-story complex with 500 beds that would provide the latest treatment and facilities in the world, with leading experts hired to provide consultation services.

It would also provide free treatment and medicines to 2,000 patients every day, it was announced.

The project’s investors include several organizations from Australia, the United Nations, and other nongovernmental organizations, a member of the organizing committee had said.

WHAT AUTHORITIES SAY

Deputy director of the HCMC Department of Planning and Investment, Nguyen Thi Huu Hoa, told Thanh Nien Wednesday her agency had not licensed the healthcare park. “We have not heard anything about this project,” she said.

Nguyen Van Chau, director of the city’s Health Department, said the department had found it “very strange” when it received the invitation. Chau said he had deputed a department official to work with the project representatives.

Le Minh Hai, head of the department’s Private Health Services Management Division, said the project developers had failed to provide a single legal document regarding construction of the park.

Ho Huu Thuan, who heads the management board for the Saigon South urban area, where the groundbreaking ceremony was held, said the construction of the healthcare park was just a “fabricated rumor,” Tuoi Tre newspaper reported.

On Wednesday, HCMC People’s Committee vice chairwoman Nguyen Thi Thu Ha said she had instructed agencies concerned to investigate the project. Any violations must be reported back to the city administration in a week at the latest, she said, adding tough measures would be taken against those flouting regulations.

Reported by Thanh Nien Staff

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